Core Viewpoint - Hormel Foods Corporation (HRL) is expected to report a decline in both revenue and earnings for the first quarter of fiscal 2025, with earnings estimated at 38 cents per share, reflecting a 7.3% decrease year-over-year, and revenues projected at $2.9 billion, indicating a nearly 2% decline from the previous year [1][3]. Financial Performance Expectations - The Zacks Consensus Estimate for quarterly earnings has decreased by a penny in the last 30 days, while the revenue estimate remains at $2.9 billion [1]. - Hormel Foods has a trailing four-quarter earnings surprise average of 7.4% [1]. Cost and Operational Challenges - The company has been facing rising selling, general and administrative (SG&A) expenses, attributed to increased employee-related costs and expenses related to its Transform and Modernize (T&M) initiative [3]. - Management anticipates further increases in SG&A expenses and advertising spending for fiscal 2025, which may negatively impact profitability [3]. - A production disruption at the Planters facility in Suffolk, VA, has affected the company's ability to meet demand for its snack nuts portfolio, leading to expected near-term commercial impacts and increased costs [4]. Earnings Impact - Hormel Foods expects a negative earnings per share (EPS) impact of 4-5 cents in the upcoming quarter, primarily due to lower year-over-year whole bird prices and the production disruption in Suffolk [4]. Strategic Initiatives - Despite the challenges, Hormel Foods remains committed to innovation, which has strengthened its market position [5]. - The T&M initiative aims to enhance production efficiency and supply-chain management, while growing demand for Foodservice products has provided some relief [5]. Earnings Prediction - The company's earnings model suggests a potential earnings beat, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [6].

Core Insights - Hormel Foods (HRL) is expected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decline of 7.3% [1] - Projected revenues are anticipated to be $2.94 billion, down 2% from the same quarter last year [1] - The consensus EPS estimate has been revised downward by 3.4% in the past 30 days, indicating a reassessment by analysts [1][2] Revenue Estimates - The consensus estimate for 'Net Sales- Retail' is $1.83 billion, indicating a decrease of 4.3% from the prior-year quarter [4] - 'Net Sales- International' is expected to reach $180.75 million, reflecting an increase of 4.8% year-over-year [4] - 'Net Sales- Foodservice' is projected at $912.20 million, suggesting a slight decline of 0.1% year-over-year [4] Segment Profit Estimates - 'Segment Profit- Foodservice' is forecasted to be $149.89 million, slightly down from $150.16 million reported in the same quarter last year [5] - 'Segment Profit- International' is expected to be $20.70 million, compared to $20.03 million in the previous year [5] - 'Segment Profit- Retail' is projected at $130.78 million, down from $149.51 million year-over-year [6] Stock Performance - Hormel shares have shown a return of -4% over the past month, contrasting with the Zacks S&P 500 composite's -0.5% change [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [6]

Core Viewpoint - Hormel Foods (HRL) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the upcoming earnings report expected to significantly influence its stock price [1][2]. Earnings Expectations - The consensus estimate for Hormel's quarterly earnings is $0.38 per share, reflecting a year-over-year decrease of 7.3%. Revenues are projected to be $2.94 billion, down 2% from the previous year [3]. - The consensus EPS estimate has been revised 3.42% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Hormel is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.66%, indicating a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - Hormel has beaten consensus EPS estimates three out of the last four quarters, although it delivered a surprise of -2.33% in the last reported quarter [12][13]. Conclusion - Hormel is viewed as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [16].

Group 1 - The Consumer Staples sector has increased by 3.6% at the start of 2025, but it has underperformed compared to the S&P 500 [1] - Despite strong performances from companies like Walmart and Costco, many well-known Consumer Staples brands are lagging behind [1]

Product Launch - Hormel Foods has launched the HORMEL GATHERINGS® Bold and Spicy Tray, featuring jalapeño pepperoni and spicy salami, aimed at spice lovers and snack enthusiasts [1][2] - The jalapeño pepperoni is infused with the bold heat of jalapeño peppers, while the spicy salami includes flavors of chorizo, garlic, paprika, and peppers, creating a unique snacking experience [2] Market Trends - The popularity of spicy food is on the rise among consumers, and the new tray is designed to meet this growing trend [2] - The product is positioned as a convenient option for gatherings, appealing to consumers looking for bold flavors and spice [2] Availability - The HORMEL GATHERINGS® Bold and Spicy Tray will be available at local super centers, with plans for nationwide expansion this spring [2] Company Overview - Hormel Foods Corporation, based in Austin, Minnesota, generates approximately $12 billion in annual revenue and operates in over 80 countries [4] - The company is recognized for its diverse brand portfolio, including PLANTERS®, SKIPPY®, SPAM®, and more than 30 other brands, and has received numerous accolades for corporate responsibility [4]

AUSTIN, Minn., Feb. 4, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, invites interested parties to participate in a webcast and conference call with Jim Snee, president and chief executive officer; Jacinth Smiley, executive vice president and chief financial officer; and John Ghingo, executive vice president, Retail; to discuss the Company's first quarter financial results. The Company will issue its earnings release before the markets open on Thursday ...

Lynn Egner to assume the role of Vice President of Foodservice sales Natosha Walsh moves to Vice President of Retail sales – West AUSTIN, Minn., Feb. 3, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE:HRL), a Fortune 500 global branded food company, today announced sales executive moves for its Retail and Foodservice business segments. Lynn Egner will move to the role of vice president of Foodservice following David Weber's recent advancement to group vice president, Foodservice. Natosha Walsh will move ...

AUSTIN, Minn., Jan. 30, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, announced the upcoming retirement of Mark Ourada, group vice president, Foodservice, following 37 years of dedicated service and leadership. Throughout his nearly four-decade-long career with the company, Ourada has played an active role in the successful development and evolution of the $3.8 billion Foodservice business segment. He was also instrumental in the PLANTERS® brand integr ...

AUSTIN, Minn., Jan. 21, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced it will virtually host its 2025 Annual Meeting of Stockholders. The meeting is open to all registered stockholders or beneficial owners of the company's common stock at the close of business on Nov. 29, 2024. A live webcast of the meeting, virtualshareholdermeeting.com/HRL2025, will begin at 6 p.m. CST on Tuesday, Jan. 28, 2025, with registration on the meeting site b ...

Core Points - Hormel Foods Corporation announced the retirement of Brian Johnson, vice president and corporate secretary, after a 30-year career with the company [1] - Johnson has been recognized for his expertise, sound judgment, integrity, and dedication, contributing significantly to Hormel Foods and the Austin, Minnesota community [1] - Hormel Foods generates approximately $12 billion in annual revenue and operates in over 80 countries, with a diverse portfolio of well-known brands [3] Company Overview - Hormel Foods is a global branded food company with a strong presence in the market, recognized as a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats [3] - The company has received multiple accolades for its corporate responsibility and community service efforts, including being named one of the best companies to work for and one of America's most responsible companies [3] - Hormel Foods' purpose statement is "Inspired People. Inspired Food.™," reflecting its commitment to delivering trusted and iconic brands globally [3] Brian Johnson's Background - Johnson joined Hormel Foods in 1995 as a corporate attorney and progressed through various roles, becoming vice president and corporate secretary in 2010 [2] - He holds a Bachelor of Science degree from Minnesota State University, Mankato, and a J.D. degree from the University of Minnesota Law School, graduating magna cum laude [2] - Johnson is a member of several professional organizations, including the Minnesota State Bar Association and the Society for Corporate Governance [2]